As shared in this update post, a group of individuals and organizations, who do not want to be disclosed, are willing to support Omm recover the remaining losses in return for 50% of OMM tokens in the DAO fund (45M OMM tokens, which represents 21% of total supply) and 50% of future protocol fees (up to the loss amount they will be covering).
As this decision requires a community consensus, early contributors wanted to discuss this potential solution openly with the community. Please voice your opinion if you have concerns or comments before this proposal goes to a vote.
I am really happy with this solution. If i understand correctly it basicly is just a loan with no interest and there will be 50% in the DAO left. This is the best possible outcome we could have wished for. So no concerns here!!
This is great news guys! This is the way to restore trust in Omm, really appreciate all the effort that went into making this possible. Also as mentioned in the other thread, making an OTC deal with the DAO fund is definitely the smart move to leverage the funds without causing selling pressure.
If I understand it correctly, the group that is bailing us out will have there investment be returned to them over time via protocols fees. When the bail out is covered they stop earning fees and keep the OMM tokens. So, at that time they have basically purchased 21% of the OMM supply for free, which seems very reasonable as they step in now in uncertain times. This is a fair and solid deal where all parties (users, holders and bail-out group) benefit!
I’ve no concerns after reading the comments/replies below and am in full support of the proposal. Thanks to the early contributors and everyone that has contributed to date to bring us to this point. I can only imagine the amount of work that’s gone into everything over the last couple of weeks! I’ve been really impressed with how everything has been managed to date and how patient and helpful the community has been overall. It’s been amazing to see so many of the community and P-Reps rally behind this.
I’ve no doubt that Omm will be back stronger than ever
Sounds like a good option. My only concern would be this “group” having a mass amount of OMM tokens. If they get 21% of the supply I wonder how much they already would have? Could easily sway votes in their favour if all locked up.
On the flip side is that it would also be in their best interest to see the protocol succeed to increase the value of their OMM holdings and get repaid.
Indeed, valid points! I guess it comes down to “who” is stepping in and what their intentions would be. Although they won’t be disclosed, I’m sure the early contributors would not have considered this as an option unless they had full confidence that they’ve the best interest of the protocol. For example, the Foundation could be involved…again, we’ll never know but I’ve got confidence that the decision to put this forward as a proposal is not being taken lightly. Also, I’m not sure how much OMM the early contributors have between them, but I expect it’ll still outweigh this 21%.
I support this and think everyone done a really good job. The team and monks were really good on the discord.
I just have one question that’s not fully a concern. If this group locks up 21% of the OMM supply does this mean they’ll take the majority of OMM’s ICX voting power? So the voting power per user will drop drastically as suddenly we’ll have tons more OMM locked up?
Yes, it is a possibility although not confirmed. If they wish to use bOMM power to move delegation around, they can. I think only condition we can really ask of them is not to sell OMM until everything is paid back.
Thanks for the reply. I don’t see this as a major issue as they’re stepping in and being a huge help to the future of the protocol. I was just curious. Still a definite yes vote for me. Thanks again to yourself, all the early contributors, and every that has stepped in to help until now